Accra: Director of the IMF African Department, Abebe Aemro Selassie, emphasized the importance of sustaining fiscal discipline following the conclusion of the International Monetary Fund (IMF) programme to preserve the economic gains achieved through recent macroeconomic stabilization efforts. This statement was made during the release of the IMF April 2026 Regional Economic Outlook for sub-Saharan Africa.
According to Ghana Web, Selassie highlighted the recovery as a result of consistent efforts to enhance revenue mobilization, address structural weaknesses in state-owned enterprises, and stabilize the energy sector. Recent data shows a significant improvement in fiscal performance, with the primary balance shifting from a deficit of 2.9 percent of GDP in 2024 to a surplus of 2.6 percent in 2025. Additionally, the debt-to-GDP ratio improved from 61.8 percent to 45.3 percent, outperforming earlier targets.
International reserves have also strengthened, now covering 5.8 months of imports, indicating improved external stability and policy credibility. The broader macroeconomic environment has seen improvements, with growth rising to approximately 6 percent in 2025, supported by easing monetary conditions and increased investor confidence. Inflation dropped sharply from 23.8 percent in 2024 to 5.8 percent in 2025, and further to 3.2 percent by March 2026. The cedi also appreciated by more than 40 percent against the US dollar in 2025.
Selassie attributed these achievements to fiscal consolidation and structural reforms, noting that the IMF programme has anchored policy credibility. However, he warned that the post-programme period will test Ghana's ability to maintain discipline without external oversight. He stressed the importance of containing the fiscal balance and balancing development needs with sustainability challenges.
Selassie pointed out that reducing tax expenditures, such as exemptions and preferential rates, estimated at about three percent of GDP in the region, remains a critical reform area. Rebuilding fiscal buffers over the medium term is essential, especially as external risks increase.
The regional outlook has grown more complex due to escalating geopolitical tensions in the Middle East, leading to higher energy and transportation costs. Despite these risks, Ghana is regarded as one of the stronger-performing economies in the region, bolstered by reforms and improved economic buffers.